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Pursuant to a congressional request, GAO examined whether the U.S. Army, Europe (USAREUR) has effectively controlled and appropriately managed the excess materiel that has been turned in by deactivating units or returned from the Persian Gulf.

GAO found that: (1) USAREUR has had difficulty processing the large amounts of materiel turned in; (2) units and supply activities have accumulated millions of dollars of excess spare and repair parts that could be redistributed; (3) USAREUR had not controlled the turn-in, management, and disposition of excess materiel; (4) USAREUR has made improvements in the identification and management of excess materiel; (5) the most significant initiative has been the use of a special team to promote improved materiel management throughout the command; and (6) in May 1992, USAREUR was holding about $105 million of materiel in a special redistribution account stored at the redistribution facilities.

Recommendation for Executive Action

Status: Closed - Implemented

Comments: On October 26, 1992, DCSLOG directed disestablishment of the USAREUR special redistribution account. The authorization required that assets be visible to wholesale item managers and available for redistribution to meet Army-wide requirements.

Recommendation: The Secretary of the Army should transfer ownership of the USAREUR special redistribution account to the wholesale inventory managers so that this materiel can be used to fill valid Army-wide requirements.